Say what you will about gaming on the PSP vs. the iPhone, but there’s simply no denying that the 1-2 punch that is the iPhone and iPod Touch continues to seep into sales of both the Nintendo DS and the PSP. While both platforms certainly provide more immersive gaming experiences than iOS devices, casual gaming coupled with a broad array of multimedia functionality has proven to be a winning formula for Apple.

And so while Nintendo doesn’t have many options aside from its upcoming Nintendo 3DS, Sony on the other hand is no stranger to multimedia digital devices. And so it shouldn’t come as much of a surprise to anyone that Sony is working on releasing a Playstation Portable phone.

Reportedly set to run Android 3.0 (aka Gingerbread), the upcoming phone will come with built-in access to a Sony mobile marketplace where users will be able to peruse and download gaming titles, and presumably all sorts of apps as well.

Spec wise, the device runs a 1GHz Qualcomm MSM8655, 512MB of RAM, 1GB of ROM, along with a screen somewhere between 3.7 and 4.1 inches.

No word yet on a release date, but don’t look for this puppy before 2011.